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Friday 27 May 2016
Chattanooga Residents Indicted for Kidnapping & Sex TraffickingRead the Press Release
CHATTANOOGA, Tenn. – On May 26, 2016, Corrie Gillispie, a.k.a., Tyme, BiggtymeChattanoogatyme, and Profit Tyme, 40, of Chattanooga, Tenn., and Willie Watkins, a.k.a., Block Baker, Soldier, and Killer, 40, also of Chattanooga, were arrested by agents of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI), and Chattanooga Police Department, on charges involving conspiracy, kidnapping, and sex trafficking.
On May 17, 2016, a federal grand jury returned an indictment against Gillispie and Watkins for the above-referenced charges. Details of the offenses are outlined in the indictment, which is on file with the U.S. District Court and available to the public.
On May 27, 2016, Gillispie and Watkins had initial appearances before the Honorable Christopher H. Steger, U.S. Magistrate Judge, and both pleaded not guilty. Both were detained pending their next appearance in U.S. District Court, which for Gillispie is a detention hearing on May 31, 2016, at 11:00 a.m. Watkins waived his detention hearing and no further court appearances have been scheduled for him at this time.
If convicted of kidnapping, Gillispie and Watkins face up to life in prison. If convicted of sex trafficking, Gillispie faces a term of not less than 15 years in prison and will be placed on the sex offender registry for a minimum of 25 years.
This ongoing investigation is being conducted by the HSI, FBI and Chattanooga Police Department. Assistant U.S. Attorney Jay Woods represents the United States.
Members of the public are reminded that these are only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
If you believe you have information that could assist law enforcement in this ongoing investigation, please call the HSI tip line at 866-347-2423.
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California Woman Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Maria Isabel Ramos, 62, of Lake Elsinore, Calif., pled guilty today in federal court in Albuquerque, N.M., to a drug trafficking charge arising out of an 11-pound seizure of methamphetamine in Nov. 2014.
Ramos and co-defendant Monica Ortega, 39, of Riverside, Calif., were arrested on Nov. 18, 2014, after New Mexico State Police (NMSP) officers discovered approximately 5.05 kilograms (11.13 pounds) of methamphetamine in their vehicle during a routine traffic stop in Bernalillo County, N.M. Ramos and Ortega were subsequently indicted on Dec. 16, 2014, and charged with possession of methamphetamine with intent to distribute.
During today’s proceedings, Ramos pled guilty to a felony information and admitted that on Nov. 18, 2014, she was stopped by NMSP officers for driving with an expired license plate. Ramos further admitted that, during the traffic stop, the officers found a duffel bag in the trunk of her vehicle that contained plastic containers of methamphetamine.
At sentencing, Ramos faces a statutory maximum penalty of 20 years in federal prison followed by not less than three years of supervised release.
Ortega has entered a not guilty plea to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Albuquerque office of the DEA and the NMSP. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Nelson Pacheco, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between December 2010 and April 4, 2011, the defendant conspired with co-defendant Dennis Berard to distribute cocaine in the Buffalo area. On June 30, 2011, law enforcement officers executed a search warrant at Pacheco’s residence and recovered three handguns, ammunition and approximately $18,000 in cash.
Dennis Berard was convicted and sentenced.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, Border Enforcement Security Task Force, under the direction of Special Agent in Charge James C. Spero, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Niagara County Sheriff's department, under the direction of Sheriff James Voutour.
Sentencing is scheduled for September 2, 2016, at 12:30 p.m. before Judge Arcara.
Boyle County Man Convicted on All Counts of Various Child Exploitation ChargesRead the Press Release
LEXINGTON — A Boyle County man has been found guilty on all six counts of an indictment charging various child exploitation offenses.
On Thursday, a federal jury in Lexington, Ky., convicted 54 year-old Mark Andrew Morris of two counts of producing child pornography, two counts of distributing child pornography, and one count each of receiving and possessing child pornography. The jury returned its verdicts after approximately 35 minutes of deliberation, following two days of trial.
According to evidence presented at trial, Morris used a hidden camera to record a minor female engaged in sexually explicit conduct. The evidence further revealed that Morris had downloaded numerous images of child pornography from the internet.
The investigation started when an investigator with the Kentucky Attorney General’s Cyber Crimes Unit discovered images of child pornography being made available through a peer to peer (P2P) network on the internet. The investigator collected the child pornography images, obtained the subscriber information for the Internet Protocol (IP) address, and traced the source of the images to Morris’s computer. In June 2014, a search warrant was conducted at Morris’ residence and authorities found the child pornography images on his computer and other electronic media.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation; and Andy Beshear, Kentucky Attorney General, jointly made the announcement.
The case was investigated by the Office of the Kentucky Attorney General, Cyber Crimes Unit, and the FBI. Assistant U.S. Attorney David Marye prosecuted the case on behalf of the federal government.
Morris is scheduled to be sentenced on August 29, 2016. Production of Child Pornography carries a minimum sentence of 15 years and a maximum of 30 years; receipt and distribution of child pornography carry a minimum of 5 years in prison and a maximum of 20 years; and possession of child pornography carries a maximum penalty of 10 years in prison.
Asian American and Pacific Islander Heritage MonthRead the Press Release
In commemoration of the month of May as Asian American and Pacific Islander Heritage Month, our office participated in the 12th Festival of Pacific Arts (FestPac) as Guam hosted 28 Island Nations and Territories from across the Pacific in what is called the “Olympics of Pacific Arts” and the largest cultural event to take place in Guam's history, from May 22 – June 4, 2016. The theme for FestPac 2016 was “Håfa Iyo-ta, Håfa Guinahå-ta, Håfa Ta Påtte, Dinanña’ Sunidu Siha Giya Pasifiku,” which translates to “What we own, what we have, what we share – United Voices of the Pacific.”
Our office extended a warm Hafa Adai welcome and presented Certificates of Appreciation to the Delegations of the Pacific Island Nations and Territories at the Hagatna Paseo de Susana Park. First Lady and Honorary Chairwoman of the 12th Festival of Pacific Arts, Christine Calvo, was present with representatives from the Delegations. Our staff was invited to celebrate Asian American and Pacific Islander Heritage Month by also wearing traditional cultural attire or island wear to the presentation, and participating in the FestPac events after the presentation. The FestPac events included traditional performances, arts and crafts displays and demonstrations, and music and story-telling.
According to various publications, "The Festival of the Pacific Arts is held every four years since 1972, and brings together artists and cultural practitioners from around the Pacific region for two weeks of festivity. It is recognized as a major regional cultural event, and is the largest gathering in which Pacific peoples unite to enhance their respect and appreciation of one another.
The idea of a Festival of Pacific Arts was conceived by the Conference of the South Pacific Commission (now the Secretariat of the Pacific Community (SPC) in an attempt to combat the erosion of traditional customary practices. Since 1972, delegations from 27 Pacific Island Nations and Territories have come together to share and exchange their cultures at each Pacific Arts Festival. A delegation of 2,500 performers, artists and cultural practitioners were expected, in addition to thousands of visitors from Asia and festival followers who see to it they are part of the festival every four years.”
The 28 Pacific Island Nations and Territories that participated in FestPac were: American Samoa, Australia, Cook Islands, the Federated States of Micronesia (Yap, Chuuk, Pohnpei and Kosrae), Fiji Islands, French Polynesia, Guam (2016 Host), Hawaii, Kiribati, Marshall Islands, Nauru, New Caledonia, New Zealand, Norfolk Island, Niue, Northern Mariana Islands, Palau, Papua New Guinea, Pitcairn Islands, Rapa Nui, Republic of China (Taiwan), Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu, and Wallis and Futuna.
FestPac officially started with the launching of proas from several island nations, including Guam. The seafaring group from Guam paddled just offshore to welcome visiting seafarers who traveled from their islands by proas.
The grand opening of the Guam Museum also coincided with the opening of FestPac.
Attached are photos taken at the presentation of Certificates of Appreciation to the Delegations participating at FestPac on Guam and other photos taken of some of the visiting Pacific Island Nations and Territories, participating in traditional performances, arts and crafts displays and demonstrations, and music and story-telling.
U.S. Attorney Alicia Limtiaco and USAO Staff with First Lady of Guam Christine Calvo and FestPac Delegation representatives at USAO Presentation of Certificates of Appreciation The official opening of FestPac began with the launching and sailing of proas from several island nations U.S. Attorney Alicia Limtiaco and USAO Staff visiting with Guam Museum Director Clifford Guzman and staff in front of the newly opened Guam Museum Samoa Delegation Yap Delegation New Zealand Delegation Rapa Nui Delegation Marshall Islands Delegation Northern Mariana Islands Delegation Guam DelegationActor Named in Federal Indictment Alleging Receipt and Possession of Child Pornography on his Computer and Flash DriveRead the Press Release
LOS ANGELES – Actor Mark Wayne Salling was charged today in a federal indictment with receiving and possessing child pornography on his laptop computer and a flash memory drive.
Salling, 33, of Shadow Hills, who is best known for his role as Noah Puckerman on the television show “Glee,” was named in a two-count indictment returned this afternoon by a federal grand jury.
“Those who download and possess child pornography create a market that causes more children to be harmed,” said United States Attorney Eileen M. Decker. “Young victims are harmed every time an image is generated, every time it is distributed, and every time it is viewed.”
The indictment specifically alleges that Salling used the Internet to receive a still image and a video depicting child pornography on December 26, 2015. These images depict young girls.
The second count in the indictment charges Salling with possessing two videos depicting child pornography on December 29, 2015. The image and video also depict young girls.
“The traditional stereotype about the kinds of people who commit child sexual exploitation crimes simply doesn’t dovetail with reality. As our investigators can attest, the defendants in child pornography cases come in all ages and from all walks of life,” said Joseph Macias, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Los Angeles. “While people are often surprised when high-profile individuals come under scrutiny in such investigations, we hope cases like this will raise awareness about law enforcement’s vigilance to combat the online sexual exploitation of children and hold those involved, regardless of their position, accountable for their actions.”
The laptop, a hard drive, and a USB flash drive seized from Salling’s residence at the end of 2015 contained thousands of images and videos depicting child pornography, according to investigators, who are continuing to review the material. Salling was initially arrested by the Los Angeles Police Department and HSI on state charges, and he was released on bond. Once investigators realized the scope of the collection of child pornography, the matter was referred to federal authorities for further action, which resulted in today’s indictment.
“It doesn’t matter who you are or what you do, if you hurt a child you will be held accountable,” said Lt. Andrea Grossman, Commander of the LAPD Internet Crimes Against Children Task Force. “These images are more than photographs, they are child abuse.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 20 years. The charge of possessing child pornography also carries a statutory maximum sentence of 20 years in federal prison.
Salling, through his attorney, has agreed to surrender to federal authorities on June 3 to face the charges in the indictment. He is expected to be arraigned on the indictment on that date.
The case against Salling is the product of an investigation by the Los Angeles Police Department and HSI as part of the Child Exploitation Investigations Group, a multi-agency task force that combats all forms of child exploitation. The Beverly Hills Police Department provided substantial assistance.
10 Indicted in Meth Distribution ConspiracyRead the Press Release
Jackson, TN – Ten residents of the Jackson area have been indicted for conspiring to distribute large quantities of highly pure methamphetamine throughout West Tennessee. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
On Thursday, May 26, 2016, nine of the defendants were taken into custody. One defendant remains a fugitive. Federal, state and local law enforcement agencies participated in the early morning round-up.
The following defendants have been indicted on conspiracy to distribute and possess with the intent to distribute more than 500 grams of meth, among other charges:
• David Burruss, 72, of Bolivar, Tennessee
• Rodney Richardson, 48, of Grand Junction, Tennessee
• Deon Brown, Sr., 48, of Grand Junction, Tennessee
• James Walker Carroll, 35, of Savannah, Tennessee
• David Bryan, 29, of Jackson, Tennessee
• Thomas Rodgers, 38, of Lexington, Tennessee
• Nancy Hubanks, 65, of Savannah, Tennessee
• Matthew Ludoff, 33, of Jackson, Tennessee
• Jason Stanfill, 37, of Jackson, Tennessee
• Mary Vandiver, 42, of Jackson, Tennessee (fugitive)
According to the indictment, between late August 2014 and March 2016, the defendants conspired with each other to distribute and possess with the intent to distribute large quantities of "ice," which is meth with a purity level greater than 80 percent. The defendants also distributed multiple grams of meth.
During the course of a nearly two-year investigation, law enforcement officers seized more than 3,500 grams of ice, over 800 grams of meth, three firearms, two vehicles, and approximately $64,000 in drug proceeds from the defendants.
All 10 defendants have been charged with one count of conspiring to distribute 50 grams or more of actual methamphetamine (ice), and one count of aiding and abetting each other to distribute, attempt to distribute, possess with the intent to distribute and attempt to possess with the intent to distribute 50 grams or more of ice.
The defendants have also been charged with conspiring to distribute and possess with the intent to distribute 500 grams or more of meth. And aiding and abetting each other to distribute, attempt to distribute, possess with the intent to distribute and attempt to possess with the intent to distribute 500 grams or more of meth.
• Burruss, Hubanks, and Brown have each been charged with two additional counts of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with the intent to distribute 50 grams or more of meth.
• Stanfill and Vandiver have been charged with three additional counts of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with the intent to distribute 50 grams or more of meth.
• Richardson, Carroll III, Bryan and Ludoff have each been charged with an additional count of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with intent to distribute 50 grams or more of meth.
• And Rodgers has been charged with three additional counts of distributing, attempting to distribute, possession with intent to distribute, and attempting to possess with the intent to distribute five grams or more of meth.
The defendants face mandatory minimum sentences of 10 years imprisonment if convicted of the conspiracy and/or aiding and abetting charges. They also face fines of up to $10 million.
The additional distribution charges carry mandatory minimum sentences of between five and 20 years imprisonment and fines exceeding $1 million.
This case is being investigated by the Drug Enforcement Administration; Tennessee Bureau of Investigation; Jackson-Madison County Metro Narcotics Unit; 24th Judicial District Drug Task Force; Hardin County Sheriff's Department; and the United States Postal Inspector Service.
Assistant U.S. Attorney Beth Boswell is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Thursday 26 May 2016
Zuni Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Kirk Simplicio, 23, a member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a sexual abuse of a minor charge. U.S. Attorney Damon P. Martinez and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department announced the guilty plea.
Simplicio was arrested on March 17, 2015, on an indictment charging him with sexually abusing a minor who was between 12 and 16 years of age. According to the indictment, Simplicio committed the crime on Jan. 1, 2014, on Zuni Pueblo in McKinley County, N.M.
During today’s proceedings, Simplicio pled guilty to the indictment and admitted engaging in a sexual act with the victim who was 14 years old and at least four years younger than Simplicio.
At sentencing, Simplicio faces a statutory maximum penalty of 15 years in federal prison. He also will be required to register as a sex offender after he completes his prison sentence. Simplicio was remanded into custody and will remain detained pending sentencing, which has yet to be scheduled.
This case was investigated by the Zuni Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Whiteriver Man Sentenced to 188 Months in Prison for Abusive Sexual ContactRead the Press Release
PHOENIX– Yesterday, Mitchell Clawson, 30, of Whiteriver, Ariz., a member of the White Mountain Apache Tribe, was sentenced by U.S. District Judge Steven P. Logan to 188 months in prison. Clawson had previously pleaded guilty to one count of abusive sexual contact.
Clawson pleaded guilty to sexually abusing an eight year old female, also a member of the White Mountain Apache Tribe, while she slept. The incident occurred on the Fort Apache Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the White Mountain Apache Tribal Police Department. The prosecution was handled by Anthony Church, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01374-PHX-SPL
RELEASE NUMBER: 2016-050_Clawson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
United States, Mexico and Canada Join Forces to Improve Amber Alert SystemRead the Press Release
The U.S. Department of Justice’s Office of Prosecutorial Development, Assistance and Training (OPDAT) and Mexico’s Office of the Attorney General (PGR) sponsored a Trinational Forum yesterday and today in Mexico City, bringing together Amber Alert Coordinators from Mexico, the United States and Canada. The forum aimed to create mechanisms for the international coordination of Amber Alerts in order to better respond to potential cross-border cases of missing children.
Opening the forum, Mexican Attorney General Arely Gomez highlighted the importance of international cooperation in the identification of missing children, noting that the Amber Alert program “breaks the barriers of communication, time and distance,” and highlighted that the “neutralization and disruption of criminal groups and their operations cannot depend on limits created by borders or national identities.”
The importance of the Amber Alert system also was recognized by U.S. Attorney General Loretta E. Lynch in her remarks yesterday at the annual National Missing Children’s Day Ceremony in Washington, D.C., where she noted the Trinational Event in Mexico City and said, “and our commitment to rescuing missing children does not stop at the border. I am proud to say that our Department of Justice has collaborated with the Attorney General of Mexico on the development of Mexico’s AMBER Alert System, which has already resulted in the rescue of hundreds of Mexican children.”
OPDAT Senior Resident Legal Advisor Ray Gattinella told Amber Alert coordinators in Mexico City, “we currently have 75 open abduction cases from the United States to Mexico and 183 open cases from Mexico to the United States. So it makes sense that our countries would continue the collaboration on Amber Alert we started four years ago and begin coordinating on potential cross-border and interstate missing children cases.”
OPDAT assisted PGR in the creation and implementation of Amber Alert Mexico based on the U.S. program in May 2012. Since that time, Amber Alert has led to the rescue of over 350 children in Mexico. The program has also become a central piece of OPDAT’s programming in Mexico under the Merida Initiative. The United States immensely values the cooperation and collaboration from both Mexico and Canada in this critical area.
USP Hazelton inmate convicted, sentenced for assaulting fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – Arnaldo Martinez-Gomez, 30, an inmate at the United States Penitentiary at Hazelton, was convicted and sentenced today for assaulting a fellow prisoner, United States Attorney William J. Ihlenfeld, II, announced.
Martinez-Gomez assaulted a fellow prisoner during a physical altercation at USP Hazelton in September 2014. He pled guilty today to one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” He was sentenced to an additional 18 months in prison.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Federal Bureau of Prisons and the Special Investigative Services Unit at USP Hazelton led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Two plead guilty to methamphetamine traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Two individuals pled guilty to methamphetamine trafficking today in federal court in Elkins, United States Attorney William J. Ihlenfeld, II, announced.
Donald Ray Cantrell, 40, of Mill Creek, West Virginia, was discovered in possession of methamphetamine in March 2016 in Randolph County, West Virginia. Following an investigation by the Mountain Region Drug and Violent Crime Task Force, he pled guilty today to one count of "Possession with Intent to Distribute Methamphetamine." He faces up to 20 years in prison and a fine of up to $1,000,000.
Samuel Lee Winebrenner, 29, of Petersburg, West Virginia, sold morphine in Grant County, West Virginia. Following an investigation by the Potomac Highlands Drug and Violent Crime Task Force, he pled guilty today to one count of “Distribution of Morphine.” He faces up to 20 years in prison and a fine of up to $1,000,000. As part of the plea agreement entered today, Winebrenner withdrew a guilty plea previously entered in April 2016 in which he admitted to selling morphine near a protected location.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen Warner prosecuted the cases on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Two pill dealers sentenced to Federal prison for drug crimesRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced today to federal prison for oxycodone crimes, announced Acting United States Attorney Carol Casto. Kenneth Edward Campbell, 48, of Charleston, was sentenced to two years in federal prison for conspiracy to distribute oxycodone. In a separate drug prosecution, Jonathan Belcher, 37, of Logan, was sentenced to six years in federal prison for distributing oxycodone.
On August 23, 2013, the United States Postal Inspection Service intercepted a package containing oxycodone that had been sent from Detroit to Charleston. An undercover officer posing as a mail carrier delivered the package and confronted the man who accepted delivery. That man told police that Campbell had offered to give him oxycodone if he would allow the drug parcel to be delivered to his residence. Officers used the man to conduct a controlled delivery of the package to Campbell at his place of employment on the West Side of Charleston. Campbell was arrested upon taking possession of the package.
In a separate prosecution, Jonathan Belcher admitted that in August 2014, he sold oxycodone pills to a confidential informant working with law enforcement. The drug deal took place at Belcher's residence.
The case against Campbell was investigated by the United Postal Inspection Service and the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of Campbell's prosecution. United States District Judge John T. Copenhaver, Jr., imposed Campbell's sentence.
The U.S. 119 Drug Task Force investigated the Belcher case. Assistant United States Attorney John J. Frail handled the prosecution of Belcher. United States District Judge Thomas E. Johnston imposed Belcher's sentence.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Two from Northeast Ohio indicted for straw purchase of firearmRead the Press Release
Two people from Northeast Ohio were indicted for their actions related to the straw purchase of a firearm, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Named in the three-count indictment are Malcolm Roberson, 26, of Warrensville Heights, and Chimere M. Turner, 32, of Cleveland.
Count 1 charges that Roberson and Turner engaged in a straw purchase of a Jimenez Arms 9 mm pistol on Feb. 20 at Taylor Firearms LLC in Vermillion when Turner said she was the buyer of the firearms when the actual buyer of the firearm was Roberson. Count 2 charges Roberson with being a felon in possession of a firearm, of having the 9 mm pistol despite a 2011 conviction for assault. Count 3 charges Turner with making false statements following being served a subpoena.
This case is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendants’ prior criminal records (if any), the defendants’ role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two State Correctional Officers Arrested for Smuggling Drugs and Cell Phones into the J.T. Vaughn Correctional CenterRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, today announced that two State correctional officers, Thomas Nadill Boyce, Jr., age 46, and Paul Hursey, age 46, each of Dover, Delaware, have been arrested on separate federal criminal complaints, each charging the smuggling of drugs and cell phones to inmates, in return for bribes, at the J.T. Vaughn Correctional Center in Smyrna, Delaware.
The two defendants made initial appearances today before Chief United States Magistrate Judge Mary Pat Thynge and were released on bail. Each criminal complaint charges a violation of extortion under color of official right, which carries a maximum penalty of 20 years imprisonment and a $250,000 fine.
This joint investigation also resulted the filing of a criminal complaint, on December 3, 2015, against Correction Officer Lorraine Y. Mosley, who was charged with smuggling a cell phone into the Delores Baylor Women’s Correctional Institution, in New Castle, to an inmate in return for a bribe.
Commissioner Robert M. Coupe stated, “Unfortunately, contraband, to include drugs and cell phones, is successfully smuggled into DOC facilities and such criminal behavior puts the safety of our staff, inmates, and visitors to our facilities at risk. Such actions violate the public’s trust, undermine the credibility of our department, and damage the integrity of our profession. We are grateful to the U.S. Attorney’s Office, the FBI, and the DOC for leading the investigation which resulted in the arrest of these employees.”
This matter resulted from a joint investigation conducted by the Federal Bureau of Investigation and investigators from the Delaware Department of Correction. The prosecution is being handled by Assistant United States Attorney Edmond Falgowski, District of Delaware.
The charges in the criminal complaints are only allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Sentenced for Grandparent Fraud SchemeRead the Press Release
PLATTSBURGH, NEW YORK –Naromie Joseph, 29, and Christie Joseph, 25, were sentenced on May 23, 2016 and May 10, 2016, respectively, in United States District Court for the Northern District of New York announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Acting Special Agent in Charge Michael Kennedy.
The defendants pled guilty to conspiracy to commit mail fraud as a result of their participation in a scheme to defraud elderly victims. The elderly victims were contacted by people who told them that their grandchildren and other relatives needed money for bail and other purposes. Believing their loved ones needed help, the elderly victims sent the money to various addresses in Plattsburgh that the defendants arranged to use for the scheme.
Naromie Joseph was sentenced to time served after spending approximately 13 months in custody awaiting the disposition of her case; 3 years of supervised release; and was ordered to pay $27,200.00 restitution to the victims. Christie Joseph was sentenced to 4 months of weekends in jail; 3 years of supervised release; and also ordered to pay restitution to the victims.
The United States Attorney’s Office and Homeland Security Investigations would like to remind the public of the following:
- Be suspicious of anyone who calls unexpectedly asking for cash.
- Verify any supposed emergency, by calling friends and family, before sending money.
- Develop a secret code or "password" with family members that can be used to verify a true emergency.
- Resist the pressure to act quickly
- Try to contact another family member to determine whether or not the call is legitimate.
- Never wire money based on a request made over the phone or in an e-mail…especially overseas. Wiring money is like giving cash—once you send it, you can’t get it back.
If you think you’ve been victimized, contact Homeland Security Investigations at 1-866-DHS- 2ICE or at ice.gov/tips or contact local authorities or the state consumer protection agency.
Assistant U.S. Attorney Katherine Kopita prosecuted the case. The Plattsburgh Police Department originated the investigation and partnered with Homeland Security Investigations throughout. The United States Postal Service, Clinton County Sheriff’s Office, the Canada Border Services Agency and the Royal Canadian Mounted Police Project COLT also participated.
Two California Men Convicted of Methampetamine, Cocaine and Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two California men were convicted of methamphetamine, cocaine and heroin trafficking in Monroe County by a jury after a four-day trial held before U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, Reginald Braddy, age 33, and Fontaine Horton, age 37, both formerly of San Bernardino, California, were convicted of conspiracy to distribute methamphetamine, cocaine and heroin in the Monroe County area between 2012 and 2014. In addition, Fontaine Horton was convicted of two counts of distributing methamphetamine in Monroe County in October of 2013.
The defendants were charged with obtaining high-quality methamphetamine from sources in California, along with heroin and cocaine, which they then distributed for profit in the Monroe County area over a two-year period.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Officers from the Orange County, California Sheriff’s Office, the Scranton Police Department, and Plainfield Township, Pennsylvania, Police Department assisted in the investigation.
The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Fontaine Horton is facing a maximum possible penalty of 60 years’ imprisonment under federal law, a term of supervised release following imprisonment, and a fine. Reginald Braddy is facing a maximum possible penalty of 20 years’ imprisonment, a term of supervised release and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tribal Fiduciary Sentenced to 30 Months in Prison for Seven-Year Scheme to Steal More Than $260,000 from Vulnerable Members of the Salt River Pima-Maricopa Indian CommunityRead the Press Release
PHOENIX – Yesterday, Freida Ann Battise-Moore, 55, of Avondale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 30 months’ imprisonment and ordered to pay over $260,000 in restitution. Battise-Moore had previously pleaded guilty to theft or embezzlement from an Indian tribal organization.
“Ms. Battise-Moore violated the trust of the Community and its members, so the Community petitioned the court that she be incarcerated for her crime. The Community takes this matter very seriously and has taken the necessary steps that it will not happen again,” said Delbert Ray, Sr., President, Salt River Pima-Maricopa Indian Community.
In 2001, Battise-Moore—a law school graduate and a member of the Alabama-Coushatta Indian Tribe—was hired by the Salt River Pima-Maricopa Indian Community to serve as the court-appointed representative for the tribe’s incapacitated and incompetent members. In this sensitive role as “public fiduciary,” Battise-Moore was responsible for handling all of her clients’ financial affairs (i.e., receiving their Social Security, commercial and agricultural lease, and other payments and using the proceeds to pay their rent, medical bills, and other expenses). Beginning in 2006, Battise-Moore began stealing from some of her clients. Her misconduct went undetected until September 2013, at which point she was fired. A subsequent audit showed that Battise-Moore had stolen more than $260,000 from 49 clients and had spent the proceeds on expensive sports tickets and gambling, among other things. Judge Logan enhanced Battise-Moore’s sentence in recognition of the vulnerability of the victims and the fact that Battise-Moore had abused a position of trust.
The investigation in this case was conducted by the Salt River Police Department. The prosecution was handled by Dominic Lanza, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-16-130
RELEASE NUMBER: 2016-049_Battise-Moore
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tioga County Physician and Drug Dealer Sentenced for Health Care FraudRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dr. John Terry, age 65, and Thomas Ray, age 53, both of Wellsboro, were sentenced yesterday by Chief United States District Court Judge Christopher C. Conner in Williamsport. Terry was sentenced to 20 months’ in federal prison and ordered to pay $4,762 in restitution to the state Department of Human Services for fraudulent prescriptions he wrote for Oxycodone, a Schedule II controlled substance.
Ray was sentenced to 71 months’ in federal prison for possession with intent to distribute a controlled substance, which will run consecutively to 30 months of a Tioga County term consisting of 51 months to 15 years. Ray is serving the state sentence on unrelated charges.
According to U.S. Attorney Peter Smith, in April 2013, Terry allegedly caused Medicare to be billed for fraudulent prescriptions of Oxycodone intended for David Hatch, age 28, of Addison, New York, but written in the name of Stephen Heffner, Jr., age 46, of Elkland. Terry knowingly wrote the prescription in the name of Heffner, knowing Heffner was not his patient, and that the Oxycodone was intended for Hatch. Medicare paid for the prescription received by Heffner but actually delivered to Hatch.
Terry also wrote prescriptions for Oxycodone and other narcotics for Ray, in reckless disregard of the fact that the drugs were not being used by Ray for legitimate medical purposes, but being diverted and sold on the street. Medicaid paid for the medically unnecessary prescriptions written for Ray.
Heffner and Hatch were both previously sentenced to six months’ probation for theft from the Medicare Program.
The investigation was initiated in June 2013 by the Drug Enforcement Administration (DEA) drug diversion agents and the Department of Health and Human Services Office of Inspector General. During the execution of a federal search warrant at his office on July 8, 2013, Dr. Terry voluntarily agreed to surrender his medical license and his DEA registration.
The Pennsylvania State Police assisted in the investigation. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Syracuse Woman Charged with Additional Child Exploitation OffensesRead the Press Release
SYRACUSE, NEW YORK – Emily Oberst, 23, of Syracuse was charged yesterday with additional crimes relating to the sexual exploitation of minors, announced United States Attorney Richard S. Hartunian and FBI Resident Agent in Charge Andrew Vale of the FBI Albany Division. The 19 count superseding indictment returned yesterday replaces the March 2016 indictment and adds ten additional charges: Counts 2,3,4,5,6,8, and 9 allege additional conduct involving the sexual exploitation of a minor, and Counts 13, 14, and 15 allege additional conduct involving the distribution of child pornography. The superseding indictment alleges no new victims from the previous indictment.
As alleged in a previously filed criminal complaint, the investigation began on March 4, 2016 when a Task Force Officer assigned to the Washington, D.C. Metropolitan Police Department- Federal Bureau of Investigation Child Exploitation Task Force (Washington Field Office), acting in an undercover capacity, began texting with Oberst’s co-defendant Jason Kopp, who told the undercover officer that he had pictures of a female infant that had been sent to him by a woman acquaintance and distributed images of the infant to the officer. That woman is alleged to be Oberst. As a result of the ensuing investigation led by the FBI and New York State Police, Emily Oberst and Jason Kopp were arrested in March of 2016.
If convicted, Oberst faces a mandatory minimum sentence of fifteen (15) years and a maximum sentence of thirty (30) years for each of the counts charging Conspiracy to Sexually Exploit Children (count 1) and Sexual Exploitation of a Child (counts 2 - 12). She also faces a mandatory minimum sentence of five (5) years, and a maximum of twenty (20) years on each count charging her with Distribution of Child Pornography (counts 13 - 19). Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court may also impose a fine of up to $250,000 per count, and must impose a term of supervised release of between five (5) years and life. If convicted, Oberst will also be required to register as a sex offender.
The charges are merely accusations and Oberst is presumed innocent. Her trial is currently scheduled for August 8, 2016.
Jason Kopp is not named in the superseding indictment because he pled guilty earlier this month to all twenty-two counts in the original indictment. His sentencing is scheduled for September 14, 2016 before Hon. Glenn T. Suddaby in United States District Court.
This case is being investigated by the Albany Division of the FBI (Syracuse Resident Agency), the New York State Police and the Metropolitan Police Department-Federal Bureau of Investigation Child Exploitation Task Force (Washington Field Office), and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
State College Man Indicted for Firearms ViolationRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a State College man was indicted today by a federal grand jury in Williamsport for the prohibited possession of firearms and ammunition.
According to United States Attorney Peter Smith, the indictment alleges that Dennis E. Lowe sold a military-style rifle and several hundred rounds of ammunition in March 2016, despite being a person prohibited under Federal law from engaging in such activity based on a 2014 conviction for illegally possessing firearms. Lowe is also alleged to have possessed, sold and offered for sale additional handguns since July 2015. According to the indictment, the firearms include:
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a Colt handgun;
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a Smith & Wesson handgun;
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a 1911 Colt handgun;
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a 1911 cold .45 caliber handgun;
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two Colt 1903 .32 caliber handguns;
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a 12 gauge shotgun;
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two .22 caliber revolvers;
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a .32 caliber British revolver;
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an M-1 Garand rifle;
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and approximately 650 rounds of ammunition.
The government is also seeking forfeiture of the firearms and ammunition.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Geoffrey W. MacArthur.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is from 10 years, a term of 3 years supervised release following imprisonment, and a $250,000 dollar fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Springfield Man Indicted for Distributing Heroin and Crack CocaineRead the Press Release
BOSTON – Jovan Torres, 26, of Springfield, Mass., was arraigned today on three counts of distribution and possession with intent to distribute heroin and one count of distribution of heroin and crack cocaine.
According to the indictment, on four separate days in July and August 2013, Jovan Torres distributed heroin. On one of those days, he also distributed crack cocaine. Torres was detained pending a detention hearing scheduled for June 1, 2016 before U.S. District Court Magistrate Judge Katherine Robertson.
The charging statutes provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of $1 million on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz=s Springfield Office.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Indicted in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has charged seven individuals for a bank fraud conspiracy in which the defendants allegedly impersonated individual victims to remove funds from the victims’ investment accounts. Two of the defendants are also alleged to have participated in a conspiracy to transport stolen vehicles to Africa. The superseding indictment, which adds six defendants and additional charges, was returned on May 19, 2016, and unsealed today upon the arrest of six defendants. Law enforcement is still seeking the seventh defendant.
The following defendants have been arrested:
Mohammed Kwaning, a/k/a Kofi, age 35, of Laurel, Maryland;
Issah Mohammed, a/k/a Yissa and Ali, age 28, of Laurel;
Sandra Badu, age 30, of Jessup, Maryland;
Francis Osei Fosu, a/k/a Pino, age 27, of Dallas, Texas;
Mark Dennis, age 28, of Beltsville, Maryland; and
Abayomi Davies, age 29, of Silver Spring, Maryland.The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); U.S. Customs and Border Protection Baltimore Port Director Diana Bowman; Chief James W. Johnson of the Baltimore County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to the 14 count superseding indictment, the defendants stole money from the accounts of individual victims by: obtaining the email addresses of victims, then purporting to be the victims, sending emails to investment account managers requesting that funds be wired into a business account controlled by Kwaning and Mohammed; and by obtaining victims’ account information at various investment account firms and taking over the online accounts of the victims. According to the superseding indictment, Mohammed and Kwaning also created fraudulent checks and cashier’s checks drawn on the victims’ accounts, which Davies, Dennis, Badu and others deposited into accounts they controlled. The defendants then withdrew or transferred the funds from the business account they maintained to receive the victims’ funds to other accounts controlled by the conspirators before the bank discovered the fraud.
Further, the superseding indictment alleges that from at least January 31, 2013, through May 12, 2014, Kwaning and Mohammed were part of a conspiracy to have vehicles stolen in New York, New Jersey and Washington, D.C., then transported to Africa for sale. Specifically, the indictment alleges that after causing the vehicles to be stolen, the conspirators would transfer possession of the vehicles to Kwaning, Mohammed and others. The conspirators used business bank accounts opened by Kwaning and Mohammed for paperwork associated with the stolen vehicles, such as the title, registration, shipping, bill of sale and insurance. They caused the stolen vehicles to be loaded into a shipping container and delivered to the Ports of Baltimore and Newark, New Jersey, where they were shipped to destinations including Lagos, Nigeria and Accra, Ghana.
According to the indictment, the proceeds from the bank and wire fraud conspiracy were pooled with the funds used and generated from the purchase and sale of the stolen vehicles.
If convicted, the defendants face a maximum sentence of 30 years in prison for the bank and wire fraud conspiracy, and for each count of bank and wire fraud in which they are charged. Kwaning and Mohammed also face a maximum of five in prison for conspiracy to transport stolen motor vehicles, and a maximum of 10 years in prison for each of four counts of receipt and possession of stolen motor vehicles. Finally, Kwaning also faces a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. The defendants had an initial appearance today before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore. Kwaning, Mohammed and Davies are detained and Badu and Dennis were released under the supervision of U.S. Pretrial Services. Kwaning and Davies have detention hearings scheduled for May 27 and May 31, 2016, respectively. Fosu had his initial appearance in Texas and was detained pending a detention hearing.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, U.S. Customs and Border Protection and the Baltimore County and Prince George’s County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Sentencings for May 23 - May 25, 2016Read the Press Release
Robert Joseph Aragon, III, 19, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 25, 2016, for sexual abuse in Indian Country. Aragon, III was arrested in Fort Washakie, Wyoming. He received 70 months imprisonment, to be followed by 20 years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $5,655.52. This case was investigated by the Federal Bureau of Investigation.
Randal Phipps, 34, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for possession of an unregistered firearm, destructive device. Phipps received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Claudio Varela-Varela, 32, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for illegal re-entry of a previously deported alien into the United States. Varela-Varela was arrested in Gillette, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Allen Joseph Whiteplume, Jr., 30, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for burglary of a post office. Whiteplume, Jr., was arrested in Riverton, Wyoming. He received six months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,261.49. This case was investigated by the U.S. Postal Inspection Service.
Sean Allen Mapp, 35, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2016, for being a felon in possession of a firearm. Mapp was arrested in Casper, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Salvadoran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANCISCO MENDOZA-ZAVALA, age 41, a native of El Salvador, pled guilty today to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, MENDOZA-ZAVALA was previously removed from the United States on September 6, 2012. MENDOZA-ZAVALA was later found in the Eastern District of Louisiana on March 30, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If his prior conviction is proven at sentencing, MENDOZA-ZAVALA faces a maximum term of imprisonment of ten (10) years, as well as a fine of $250,000. U.S. District Judge Mary Ann Vial Lemmon set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Salvadoran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RENE MARTINEZ-QUIJANO, age 34, a native of El Salvador, pled guilty today to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, MARTINEZ-QUIJANO was previously removed from the United States on June 27, 2014. He was later found in the Eastern District of Louisiana on
March 1, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
MARTINEZ-QUIJANO faces a maximum term of imprisonment of two (2) years, as well as a fine of $250,000. U.S. District Court Judge Mary Ann Vial Lemmon set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Roanoke Woman Sentenced on Heroin ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentenced of a Roanoke woman who previously pled guilty to a federal drug charge.
Camilla Bridget Ward, 25, of Roanoke, Va., previously pled guilty United States District Court for the Western District of Virginia in Roanoke to one count of conspiracy to distribute heroin. Today in District Court, Ward was sentenced to 35 months in federal prison.
“The use of heroin has destroyed communities throughout the Western District of Virginia,” United States Attorney John P. Fishwick said today. “We will work with our law enforcement partners to continue to be vigilant in doing what we can to take those who distribute this substance off the streets and provide support to those seeking help for their addiction.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police Department and officials with the Baltimore/Washington HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Roanoke Man Sentenced on Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentence of a Roanoke man who previously pled guilty to a federal methamphetamine charge.
Derek Ryan McGhee, 38, of Roanoke, Va. previously pled guilty to one count of conspiracy to distribute methamphetamine. Today in District Court, McGhee was sentenced to 18 months in federal prison.
“Methamphetamine is a drug that has ravaged parts of Southwest Virginia for years. The United States Attorney’s Office will continue to identify and prosecute those individuals who distribute this dangerous substance,” United States Attorney John P. Fishwick Jr. said today. “We hope today’s sentence sends a clear message to those who prey on the addiction of others by distributing this dangerous drug.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco and Firearms and the Virginia State Police. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Re-Entry Employer Summit Held in West MichiganRead the Press Release
GRAND RAPIDS, Michigan—U.S. Attorney Patrick Miles announced the holding of an employer summit today in West Michigan as part of the Department of Justice’s Smart on Crime initiative. The U.S. Attorney’s Office and WMU-Cooley Law School are hosting the event to encourage local employers to consider increasing their talent pool through the hiring of returning citizens—formerly incarcerated individuals transitioning to the workplace.
"Meaningful employment opportunity is critical to effectively help people returning from prison so they do not re-offend," explained U.S. Attorney Miles. "This is crime prevention. Lowering the recidivism rate of returning citizens means less crime, fewer victims, lower costs on society, and saves money. My office strives to be proactive in prosecuting and preventing federal crimes."
The Summit follows the Department of Justice’s Re-Entry Week in late April, which highlighted various West Michigan re-entry efforts and programs. The Employer Summit includes a panel discussion and a Q&A session with local employers, the Michigan Department of Corrections and others to learn about local efforts, best practices, workforce development, legal considerations and workplace trends related to employer opportunities and benefits with respect to hiring returning citizens. Employers will be invited to join the "30-2-2" effort to recruit at least 30 employers to hire at least two returning citizens whose progress will be documented for two years.
According to the Michigan Department of Corrections, 10,000 prisoners were paroled in Michigan in 2014, many of whom have returned to Kent County to rebuild their lives. Cascade Engineering and Butterball Farms, Inc., two of the Summit’s sponsors and panelists, have experienced strong success rates hiring returning citizens.
Media representatives interested in interviewing U.S. Attorney Miles or a participant in the Summit should contact the U.S. Attorney’s Office Press Information Officer, Kaye Hooker, at (616) 560-6512.
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Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Lavern E. Looking Cloud, age 33, was indicted on June 16, 2015. Looking Cloud appeared before U.S. Magistrate Judge Daneta Wollmann on May 20, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Looking Cloud failing to register and update his registration as a convicted sex offender between April 25, 2014, and June 16, 2015.
The charge is merely an accusation and Looking Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Looking Cloud was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for July 19, 2016.
Portland Area Strip Club Operators Found Guilty of Conspiring to Defraud the IRSRead the Press Release
PORTLAND, Or - A federal jury sitting in Portland, Oregon, after a six-day trial, found three family members who ran two strip clubs in the Portland area – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – guilty of conspiracy to defraud the IRS and charges relating to filing false tax returns.
From 2007 through mid-2011, the defendants’ strip clubs collected more than $1.5 million in cash door charges and dancer stage fees. The defendants maintained a set of books at the Cabaret clubs that did not include the $1.5 million in stage fees and door fees and kept a second set of books, which tracked all of the cash receipts, including the stage and door fees, at the home of David and Marci Kiraz.
IRS Special Agents executed search warrants at the strip clubs and at the residence of David and Marci Kiraz, and seized 85 banker boxes of records and all the files on 11 computers. IRS Special Agents then spent over 600 hours reviewing these records, located the second set of books, and proved David Kiraz filed false tax returns.
David Kiraz reported the business activity of the strip clubs each year on his individual income tax returns. The defendants gave their tax return preparers the false books maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report between $330,000 and $460,000 in door fees and stage fees each year. In this way, the defendants evaded $500,000 in income taxes for tax years 2007 through 2010.
The jury convicted David G. Kiraz, 34, of Happy Valley, his father George D. Kiraz, 56, of Portland, and David’s brother Daniel Kiraz, 31, of Portland, of conspiring to defraud the IRS by filing false federal income tax returns for David Kiraz. The jury also found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of a false tax return. The jury acquitted Marci Kiraz, wife of David Kiraz.
Sentencing is scheduled August 30, 2016, before Senior U.S. District Court Judge Robert E. Jones for the District of Oregon in Portland. Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the IRS and three years in prison on the charges of filing false tax returns and aiding and assisting in the preparation and filing of false tax returns. They also face a maximum term of three years of supervised release and a maximum fine of $250,000 on each count.
"Every business is required to pay its fair share of taxes," said U.S. Attorney Billy J. Williams. “This office, in partnership with the IRS, will vigorously investigate and prosecute business owners who take advantage of the cash-intensive nature of their businesses to conceal income from the IRS and cheat on their taxes.”
This case was investigated by special agents with IRS-Criminal Investigation in Portland, Oregon and prosecuted by Trial Attorney Leslie A. Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth D. Uram and Quinn P. Harrington for the District of Oregon.
Portland Area Strip Club Operators Found Guilty of ConspiracyRead the Press Release
A federal jury sitting in Portland, Oregon found three family members who ran two strip clubs in the Portland area guilty of conspiracy to defraud the United States and charges relating to the filing of false tax returns after a six day trial, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Billy J. Williams of the District of Oregon announced.
David G. Kiraz, his father George D. Kiraz, and David’s brother Daniel Kiraz, ran two Portland-area strip clubs – Cabaret Lounge I at 503 W Burnside Street and Cabaret Lounge II at 17544 SE Stark Street – and engaged in a scheme to defraud the United States by filing false federal income tax returns with the Internal Revenue Service (IRS), according to the evidence presented at trial. In addition to finding the three guilty of conspiracy to defraud the United States, the jury found David Kiraz guilty of three counts of filing false tax returns, George Kiraz guilty of three counts of aiding and assisting in the preparation and filing of false tax returns, and Daniel Kiraz guilty of one count of aiding and assisting in the preparation and filing of false tax returns.
“The Kirazes engaged in a long-running conspiracy to defraud the U.S. Treasury and today, a jury held them accountable for their crimes,” said Acting Assistant Attorney General Ciraolo. “The department is committed to investigating and prosecuting individuals and entities who violate our nation’s tax laws and will seek incarceration, fines and restitution to send a clear message to other potential offenders.”
The evidence at trial showed that from 2007 through mid-2011, the strip clubs collected cash through both cover charges from customers and stage fees from dancers. In addition to stage fees, the dancers were routinely required to pay fines for various etiquette infractions. The defendants maintained a set of books at the Cabaret clubs which recorded the sales, lottery and ATM fees but not the stage and door fees. The defendants maintained a second set of books, which tracked all of the cash receipts including the stage and door fees, at the home of David Kiraz. A video played in court showed a 2010 meeting between George Kiraz and an undercover IRS agent posing as a prospective buyer of the strip clubs. The IRS undercover agent was given a copy of the Kirazes’ second set of books, including the stage and door fees, at that meeting.
Further evidence presented to the jury proved that the business activity of the strip clubs was reported each year on the individual income tax return of David Kiraz. The defendants gave their tax return preparers the false financial records maintained at the strip clubs, intentionally causing the return preparers to create tax returns for David Kiraz that did not report substantial amounts of cash obtained through cover charges, stage fees and fines. Their actions resulted in underreporting of taxable income of more than $1.5 million and caused a tax loss of more than $500,000 for tax years 2007 through 2010.
The date for the sentencing hearing before U.S. District Judge Robert E. Jones for the District of Oregon in Portland has not yet been set. Each defendant faces a statutory maximum sentence of five years in prison on the charge of conspiracy to defraud the United States and three years in prison on the charges of filing false tax returns or aiding and assisting in the preparation and filing of false tax returns. They also face supervised release and a maximum fine of $250,000 on each count.
This case was investigated by special agents with IRS-Criminal Investigations and prosecuted by Trial Attorney Leslie Goemaat of the Justice Department’s Tax Division and Assistant U.S. Attorneys Seth Uram and Quinn P. Harrington for the District of Oregon.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Patrick Air Force Base Staff Sergeant Sentenced to 10 Years for Attempted Enticement of A Minor for SexRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Air Force staff sergeant Thomas Allen Vaughn (34), who had previously been stationed at Patrick Air Force Base, to 10 years in federal prison for attempted enticement of a minor for sex. The Court also ordered Vaughn to forfeit a cell phone that he had used to commit the offense.
According to court documents, between October 23 and October 28, 2015, Vaughn communicated online with an undercover agent who was posing as the older brother of a 14-year-old girl, and indicated he was looking for a boyfriend for his sister. During online and phone conversations, Vaughn discussed his interest in engaging in sexual acts with the “girl.” Vaughn sent the “child” a photo of himself naked from the waist up and wrote directly to the “child” that a naked picture from her would be “hot.” He also requested that the “child” send him a “sexy” picture. Vaughn indicated that he wanted to meet the “child,” and asked her what street she lived on.
On October 28, 2015, Vaughn made plans to meet the “child” at 6:00 p.m. at her residence. The “child” advised that she was still at school and wouldn’t be at home at that time. Vaughn then drove to the school that he believed the “child” attended. He was arrested and had condoms in his possession.
This case was investigated by Air Force Office of Special Investigations in Tampa. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of “the Wholesale Source” Convicted for Selling Unsafe Dietary Supplements OnlineRead the Press Release
ATLANTA - Chenhsin Chan, a/k/a Paul Chan, has been found guilty of 30 felony counts following a three-day jury trial, in connection with his online marketing and sale of dietary supplements containing ephedrine in violation of a federal ban.
“Ephedrine has been banned for use in dietary supplements for over a decade now,” said United States Attorney John Horn. “Chan, however, continued to market and sell unlawful products to online customers, exposing them to an unreasonable risk for illness or injury. He willfully broke the law, and his conviction should send a message to those who seek to endanger the online marketplace with unsafe products.”
“This verdict emphasizes that criminals selling unsafe, adulterated dietary supplements to American consumers will be held accountable for their actions,” said Robert J. West, Special Agent in Charge, United States Food and Drug Administration (“FDA”) Office of Criminal Investigations’ Miami Field Office. “The FDA will continue to pursue and bring to justice those who place profits above the public health.”
According to U.S. Attorney Horn, the charges, and other information presented in court: Paul Chan owned and operated The Wholesale Source, LLC, a company that marketed and sold dietary supplements, primarily through affiliated websites including www.thatswholesale.com and www.ephedrawholesale.com. From at least July 2005 through August 2012, Chan marketed and sold dietary supplements on his websites that contained ephedrine alkaloids. In April 2004, the FDA published a final rule declaring dietary supplements containing ephedrine alkaloids to be adulterated because they present an unreasonable risk of illness or injury. Chan was warned by FDA investigators and others that it was illegal to sell dietary supplements containing ephedrine alkaloids, but he continued to do so.
Chan’s websites made materially false and misleading claims concerning the use of ephedrine, such as that ephedrine has been approved by the FDA for treatment of any disease, and that ephedrine has “never been illegal.” The jury found that these false and misleading claims were designed to lure customers into believing that it was legal to purchase adulterated dietary supplements containing ephedrine, when it was not. Chan sold over $4.5 million in dietary supplements with ephedrine alkaloids, including to customers in the Northern District of Georgia.
Chenhsin Chan, a/k/a Paul Chan, 44, of Elmhurst, New York, was charged by a federal grand jury on May 29, 2014, with ten counts of mail fraud, ten counts of introducing adulterated food (namely, dietary supplements containing ephedrine alkaloids) into interstate commerce, five counts of knowingly distributing a listed chemical (namely, ephedrine) without obtaining the required registration, and five counts of money laundering. The jury rendered a guilty verdict on all thirty counts of the indictment.
In addition to its guilty verdict on the charges, the jury also criminally forfeited assets the defendant purchased with proceeds from the crimes, including real property in New York that had been purchased for $950,000, a Mercedes Benz purchased for over $50,000, and a Lamborghini Gallardo purchased for approximately $117,000, as well as over $666,000 in proceeds from the crimes.
Sentencing for Chan has not yet been scheduled.
This case is being investigated by the FDA’s Office of Criminal Investigations. The Drug Enforcement Agency provided valuable assistance.
Assistant United States Attorneys Steven D. Grimberg and Kelly K. Connors are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Owner of Burley Income Tax Preparation Business Sentenced for Preparing Falsified Income Tax Returns for ClientsRead the Press Release
BOISE – Cruz “Kelly” Chacon, 42, of Burley, Idaho, was sentenced yesterday to 18 months in federal prison, followed by one year of supervised release, for assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Chacon to pay $81,384.00 in restitution. Chacon pleaded guilty on February 22, 2016.
According to the plea agreement, from 2008 through 2011, Chacon and some of her employees at Kelly’s Tax Service submitted over 2,500 federal falsified income tax returns. They did this primarily by claiming tax credits to which their clients were not entitled. Specifically, Chacon and her employees would prepare tax returns that claimed the “child tax credit” and the “additional child tax credit” for taxpayers who did not qualify for these credits. This had the effect of increasing clients’ tax refunds, which helped Chacon to generate business.
“Those who intentionally submit falsified income tax returns to the IRS victimize all taxpayers because we all share the costs of paying for the improper tax refunds,” U.S. Attorney Olson said. “We will continue to work closely with the IRS to root out this illegal activity, especially where a tax preparation business assists individuals in breaking the law.”
The case was investigated by the IRS Criminal Investigations division.
Orville Washington Man Sentenced to 20 Years in Connection to His Leadership in a Drug Distribution NetworkRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jason C. Youker, age 42, of Oroville, Washington, was sentenced yesterday, after a jury previously found him guilty on December 16, 2015, of 32 felony counts relating to his leadership of a drug distribution network. The felony counts included conspiracy to distribute heroin and 50 grams or more of actual methamphetamine, distribution of heroin and methamphetamine, possession of heroin and methamphetamine with intent to distribute, use of a communication facility in furtherance of a drug-
trafficking offense, and felon in possession of firearms and ammunition. Youker was found to be possession of fifteen firearms. United States District Judge Salvador Mendoza, Jr., sentenced Youker to a 240 month term of imprisonment, to be followed by a five year term of court supervision after he is released from federal prison.
According to information disclosed during the court proceedings, beginning in October of 2012 and continuing until Youker’s arrest on September 17, 2014, Youker led a conspiracy to distribute methamphetamine and heroin from a private compound located on Gold Mountain near Republic, Washington. Youker was in the process of constructing a residence on the compound and paid some of his workers in heroin. Evidence showed that Youker used the compound to cut and package heroin and methamphetamine for sale and buried it on the compound. Youker and would then disclose the locations of heroin and methamphetamine to subordinates or customers by text message. At sentencing, Youker was held responsible for 178 grams of heroin, 294 grams of actual methamphetamine, and 155 grams of “ice” or crystalized methamphetamine. Several of the firearms were discovered in a cache of firearms hidden on his property. Firearms were also found in a garden area and in two trailers located on the compound.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, “The distribution of heroin and methamphetamine poses a serious issue to the health and welfare of everyone in our communities, including those who become addicted. Youker’s sentence of twenty years reflects the seriousness of his criminal conduct and his role as the leader of this drug distribution network.”
Mr. Ormsby further stated, “This joint federal, state and local agency investigation demonstrates the dedication of our agents and officers and the willingness to utilize resources at every level of law enforcement to investigate and prosecute drug trafficking violations that occur within this District.”
This investigation was conducted by the Drug Enforcement Administration, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the North-Central Washington Narcotics Task Force, the Ferry County Sheriff’s Office, and the Republic Police Department. The case was prosecuted by Timothy J. Ohms and Matthew F. Duggan, Assistant United States Attorneys for the Eastern District of Washington.
Ocoee Man Found Guilty of Using Toddler to Produce Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Timothy Michael Sedlak (42, Ocoee) guilty of two counts of using a minor to produce child pornography and one count of possessing child pornography. He faces a maximum penalty of 30 years in federal prison on each production count and up to 10 years’ imprisonment on the possession count. The sentencing hearing has not yet been set. Sedlak was indicted on December 9, 2015.
According to evidence presented at trial, on two occasions, Sedlak took photographs of himself sexually abusing a small child. The first incident took place in September 2009, when the victim was a year old, and the second incident took place in April 2011, when the child was three. The images of Sedlak abusing the child were discovered when United States Secret Service agents executed a search warrant on Sedlak’s home as part of an unrelated computer intrusion investigation. In addition to the images of the victim, agents discovered hundreds of images of child pornography on Sedlak’s computers that had been downloaded from the Internet.
This case was investigated by the United States Secret Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Northern California Man Sentenced to 108 Months’ Imprisonment for Receipt of Child PornographyRead the Press Release
OAKLAND – Konrad Wolff was sentenced to 108 months in prison for receipt of child pornography announced United States Attorney Brian J. Stretch. The sentence was handed down today by the Honorable James Donato, U.S. District Judge and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Wolff, 28, previously of Albany, Calif., was arrested early last year at Ft. Benning, GA. On December 18, 2015, after a bench trial before Judge Donato, Wolff was convicted of receiving thousands of images and hundreds of videos of child pornography in violation of 18 U.S.C. § 2252(a)(2). The evidence at trial established that Wolff possessed videos and images of minor and prepubescent children engaging in sexually explicit and sadomasochistic conduct. Judge Donato also found at sentencing that the defendant was in possession of certain manuals which provided step-by-step instructions on how to sexually exploit children while avoiding detection by law enforcement.
Wolff was originally indicted on December 18, 2014, and charged with one count of possessing child pornography in violation of 18 U.S.C. § 2252 (a)(4)(B). On February 19, 2015, the grand jury returned a two-count superseding indictment that added the more serious receipt of child pornography charge, a violation of 18 U.S.C. § 2252(a)(2).
In addition to the prison term, Judge Donato also sentenced the defendant to a 15-year period of supervised release and ordered him to pay restitution.
Assistant U.S. Attorney Scott D. Joiner prosecuted the case with the assistance of Ponly Tu and Patricia Mahoney. The prosecution is the result of a three-month investigation by the FBI and the University of California Berkeley Police Department.
Nixa Woman Pleads Guilty to $80 Million Fraud Scheme to Sell Counterfeit Cell Phone PartsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., woman pleaded guilty in federal court today to selling more than $80 million worth of counterfeit cell phone components over the Internet and at a Springfield, Mo., store.
Sherrie Householder, 59, of Nixa, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges her with one count of mail fraud, one count of money laundering and one count of tax evasion.
By pleading guilty today, Householder admitted that she received more than $80 million from the sale of counterfeit items over approximately three years, from Dec. 3, 2012, to Jan. 14, 2016.
Householder managed and operated Flash Technology, LLC, also known as Flash Tech, a business that sold cell phone components (such as replacement screens, lithium batteries, weight scales, phone cases and internal circuitry) over the Internet and at a Springfield store. Householder represented that the cell phone components were manufactured by legitimate companies – including Apple, Samsung, LG, Microsoft, Android, Dell, Blackberry, ASUS, Acer, Kindle, HTC, Motorola, Nokia, Sony, ZTE and others. Although each part contained trademarks and markings that made it appear the legitimate holder of the trademark had manufactured the parts, and although Householder used the trademarks and logos of these companies on her Web sites, the components were actually counterfeit.
Wang “Frank” Lou, a Chinese citizen, owned Flash Tech, while Householder managed the company’s activities in the United States. Lou shipped the cell phone component parts to Householder. Nearly 5,000 international shipments were sent to Flash Tech from China.
Federal agents from Homeland Security Investigations (HSI) and Customs and Border Protection conducted numerous border inspections of these shipments. All of the items shipped from Lou to Householder and inspected by federal agents were determined to be counterfeit. At least nine separate shipments, each with multiple packages, were inspected and ultimately confiscated after it was determined that the shipments contained counterfeit cell phones and counterfeit component parts. Agents conferred with industry experts and determined that the total value of the counterfeit merchandise seized during their inspections totaled $359,539. After each shipment was seized, the agencies issued letters of notification to Householder at Flash Tech advising her that the items being shipped to her company were counterfeit and were seized by federal agents. Even though Householder received these written notifications, she still continued to sell the counterfeit items at her Springfield stores and over the Internet.
After the initial seizure of counterfeit items, Householder caused future shipments from Lou to be sent to different names and addresses, then re-routed delivery to Flash Tech, in an attempt to avoid the seizure of additional shipments.
On Feb. 2, 2016, search warrants were simultaneously executed at Householder’s Nixa residence and at the Flash Tech store in Springfield. At each location, thousands of cell phones, electronics and component parts were seized. After seizing these items, agents and company experts determined that all of the items were counterfeit. The total amount of items seized was worth approximately $5.5 million and filled two large moving trucks.
Householder also admitted that she failed to pay any taxes between 2013 and 2015 on her total salary of $642,109. Householder failed to report her total income of $114,362 for 2013, $255,259 for 2014 and $279,959 for 2015. As a result, Householder owes $151,838 in back taxes. In addition to the federal income taxes owed, Householder also owes the Missouri Department of Revenue $32,743 for her failure to pay state income taxes for 2013 through 2015.
Householder must forfeit to the government $556,938 seized from various PayPal, Amazon and bank accounts, numerous desktop and laptop computers, iPads, hard drives, computer and cell phone components and a money judgment of $8,866,069.
Under federal statutes, Householder is subject to a sentence of up to 35 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Homeland Security Investigations and IRS-Criminal Investigation.
New York Man Sentenced on Drug Trafficking ChargesRead the Press Release
WILLIAMSPORT - The United States Attorney's Office for the Middle District of Pennsylvania announced that Ibrahim Stevens, age 26 of Brooklyn, New York, was sentenced today to 60 months in prison by Chief U.S. District Court Judge Christopher Conner for his role in a drug trafficking operation in Williamsport.
According to United States Attorney Peter Smith, the charge arose from an investigation conducted by the Lycoming Narcotics Enforcement Unit and the Bureau of Alcohol, Tobacco, and Firearms. During a search of Stevens’ apartment in May 2014, police found 80 grams of crack cocaine and heroin. The drugs were found partially flushed in a toilet.
A second co-defendant, Anthony Gaskin, has pled guilty and is awaiting sentencing.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lycoming County Narcotics Enforcement Unit. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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New Orleans Woman Pleads Guilty to Conspiracy, Theft of Federal Funds and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DOMINIEL TRINETTE JONES, age 26, of New Orleans, pled guilty today to conspiracy to steal federal funds, theft of federal funds, and aggravated identity theft.
According to court documents, in September 2014, JONES conspired with others to unlawfully acquire two United States Treasury checks that did not belong to her. The refund checks were the property of the United States and payable to two actual taxpayers who were owed tax refunds. JONES also obtained two false Georgia driver’s licenses in the names of the two taxpayers who were payees on the refund checks, for the purpose of opening bank accounts to deposit and steal the Treasury funds. Using the fake driver’s license bearing the name S.H., JONES opened a bank account at Woodforest National Bank in Covington, in S.H.’s name, but deposited the check later that day at a different branch in Gulfport. Later that day, JONES traveled to the Woodforest National Bank in New Orleans and withdrew $10,000 from the account bearing the name S.H. using the fake driver’s license.
Additionally, JONES and a coconspirator opened an account in the names of S.V. and J.V. at Woodforest National Bank located in LaPlace. JONES and the coconspirator presented fraudulent Georgia driver’s licenses in the names of S.V. and J.V. to open the account. The same day, JONES, and the co-conspirator used the Treasury check, payable to S.V. and J.V., as the initial deposit to open the account at Woodforest National Bank in LaPlace.
Count One, Conspiracy to Steal Federal Funds carries a maximum penalty of five (5) years imprisonment, a fine of not more than $250,000, supervised release of not more than three years, and a special assessment of $100.
Counts Two and Three, Theft of Federal Funds, each carry a maximum penalty of ten (10) years imprisonment, a fine of not more than $250,000, supervised release of not more than three years and a special assessment of $100, per count.
Counts Four and Five each charge JONES with Aggravated Identity Theft. Those counts each carry a two years imprisonment that must run consecutively to the sentence for Counts Two and Three.
U.S. District Judge Eldon E. Fallon set sentencing for September 1, 2016.
Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “We are pleased with the guilty plea entered today by Ms. Jones. Our agency will continue to work with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system. Identity theft is an on-going problem and IRS-CI will continue to vigorously investigate and prosecute those engaged in these illegal activities. Participation in refund fraud schemes does not pay and those who do so will be held accountable for their illegal activities.”
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation, in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
New Orleans Man Pleads Guilty in Conspiracy to Traffic Heroin Using MegabusRead the Press Release
U.S. Attorney Kenneth A. Polite announced that THOMAS GORDON, age 32, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin.
GORDON was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015. According to court documents, this Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
GORDON is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000. U.S. District Judge Carl J. Barbier set sentencing on September 1, 2016.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), St. Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
New Haven Man Sentenced to More That 3 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ORLANDO ESTRADA, 26, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, this matter stems from an investigation conducted by the New Haven Police Department and the FBI’s New Haven Safe Streets Task Force.
On December 15, 2014, New Haven Police encountered ESTRADA and another male in an improperly-parked vehicle in the Fair Haven section of New Haven. When officers approached the car, the other occupant, who was in the driver’s seat, attempted to flee the scene and was observed throwing a packet before he was taken into custody. Officers located the packet, which was found to contain crack cocaine.
An officer conducted a search of ESTRADA, who had been in the passenger seat of the car, and located a laser sight for a handgun in one of ESTRADA’s pockets. ESTRADA then advised the officer that there was a loaded pistol under the passenger seat. The officer seized the firearm and ESTRADA was arrested.
Prior to December 2014, ESTRADA had been convicted of multiple felony offenses.
ESTRADA has been detained since his arrest. On June 11, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
The FBI’s New Haven Safe Streets Task Force includes participants from the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Navajo Man from Arizona Sentenced to Ten Years for Federal Child Sexual Abuse Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Aaron Hubbard, 34, an enrolled member of the Navajo Nation who resides in Fort Defiance, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 120 months in federal prison followed by ten years of supervised release for his abusive sexual contact of a minor child conviction. Hubbard will be required to register as a sex offender after completing his prison sentence.
Hubbard was arrested on Feb. 25, 2015, on an indictment alleging that he sexually abused a child victim from Sept. 1, 2011 through May 30, 2012, on the Navajo Indian Reservation in McKinley County, N.M.
On Nov. 2, 2015, Hubbard entered a guilty plea to an abusive sexual contact with a child charge. In entering his guilty plea, Hubbard admitted sexually molesting a Navajo child who was less than 12 years old from Sept. 1, 2011 through May 30, 2012. Hubbard committed the crime within the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case under Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Municipal Court Judge Pleads Guilty in Corruption SchemeRead the Press Release
PHILADELPHIA – Joseph O’Neill, 65, of Philadelphia, Pennsylvania, pleaded guilty today to making false statements to the FBI during an investigation of potential wrongdoing in the Philadelphia Municipal Court. O’Neill is a judge on the Philadelphia Municipal Court. U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for September 7, 2016.
O’Neill received a phone call from then-Municipal Court Judge Joseph Waters about a civil small claims case that was scheduled for a hearing before O’Neill. In an ex parte conversation, Waters told O’Neill that the defendant in the small claims case was a friend and asked O’Neill to “take a hard look at it.” When the FBI later interviewed O’Neill about the ex parte conversation, O’Neill denied having been contacted by anyone in advance of the hearing on the small claims case to ask for a favor. In a follow-up interview, O’Neill denied that anyone had contacted him in advance of the hearing and told him the defendant in the small claims case was a friend of the caller. Waters pleaded guilty in September of 2014, to mail fraud and wire services fraud in connection with the corruption scheme.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
Member of Bronx Gang Pleads Guilty to Racketeering Conspiracy, Including Murder and Attempted MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that today WALI BURGOS, a/k/a “Guy Fisher,” pled guilty to participating in a racketeering conspiracy, and in connection with that plea, admitted to committing the murder of Johnny Moore and a separate attempted murder of another intended victim, all in connection with a violent street gang known as “18 Park,” which is based primarily in and around the New York City Police Department’s 40th Precinct in the Bronx, New York. As part of his guilty plea, BURGOS admitted to shooting and killing Johnny Moore, a 16-year-old, in the Patterson Houses area in the Bronx, and to committing a shooting and attempted murder in which Burgos fired shots at a rival gang member, hitting the rival gang member’s cap, knocking it off his head. BURGOS faces a maximum term of life in prison, and will be sentenced before United States District Judge Paul A. Engelmayer on September 8, 2016.
Manhattan U.S. Attorney Preet Bharara said: “For far too long, members of 18 Park and their rival gangs have terrorized the people of New York by engaging in all manner of mayhem – including murder, attempted murder, and other racketeering activities. In 2013, Wali Burgos was acquitted of the murder of Johnny Moore after a jury trial in Bronx County Supreme Court. Today, Burgos accepted responsibility for that murder and pled guilty to it in federal court. Gang violence cannot be allowed to persist, and today’s guilty plea shows that law enforcement won’t give up until the perpetrators of such violence are brought to justice.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
BURGOS was a member of the Bronx-based street gang known as 18 Park, and in that capacity committed acts of violence with other gang members, including murder and attempted murder. From at least 2006 to December 2015, members and associates of 18 Park enriched themselves by selling drugs, such as crack cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of 18 Park – including BURGOS – killed and attempted to kill other individuals. On May 29, 2011, BURGOS shot Moore to death in the Patterson Houses area. On October 2, 2014, BURGOS shot at and attempted to murder a member of a rival gang, also in the Patterson Houses area. BURGOS just missed the rival gang member, shooting the cap off his head.
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Mr. Bharara praised the work of ATF, the DEA, and the NYPD. He also thanked the Bronx County District Attorney’s Office for their participation and support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys James McDonald, Samson Enzer, Dina McLeod, and Andrew Adams are in charge of the prosecution.
Medical Doctor Arrested on Federal ‘Structuring’ Charges for Making Cash Deposits to Avoid Federal Reporting RequirementsRead the Press Release
LOS ANGELES – A Los Angeles-area doctor was arrested this morning after being indicted on federal “structuring” charges that allege he made hundreds of thousands of dollars in cash deposits designed to circumvent federal reporting requirement.
Dr. Washington Bryan II, 47, was arrested this morning at his residence in Westwood. Bryan is expected to be arraigned this afternoon at the United States Courthouse in downtown Los Angeles.
The 29-count indictment charges Bryan with structuring more than $400,000 in cash deposits between October 2011 and January 2013. Bryan allegedly made deposits of less than $10,000 each into four separate accounts for the purpose of preventing banks from reporting the deposits to the federal government, which is required for every cash transaction of more than $10,000.
In conjunction with Bryan’s arrest, investigators executed federal search warrants at Bryan’s residence and his Brentwood medical office. The affidavit in support of the search warrants discusses a total of $3.8 million in structured cash deposits allegedly made by Bryan as far back as December 2007. The affidavit also discusses evidence that Bryan structured the cash for the purpose of concealing income he receive from thousands of fraudulent prescriptions that he issued for narcotic painkillers and HIV medications.
According to data maintained by the State of California, Bryan issued nearly 10,000 controlled drug prescriptions over a three-year period that ended in March. According to the affidavit, 86 percent of those prescriptions were for the same two narcotic drugs, namely, oxycodone (commonly known by the brand name OxyContin) and oxymorphone (also known by the brand name Opana). Since 2006, Medicare has paid more money to pharmacies to cover Bryan’s narcotic drug prescriptions – $7.8 million – than for any other prescribing doctor in California, and he outpaced the next-highest prescriber by more than $1.6 million.
“The federal structuring statute was designed to prevent criminals from hiding their illicit proceeds from scrutiny,” said United States Attorney Eileen M. Decker. “In this case the defendant will now be held accountable for his attempt to hide millions of dollars made from excessive and highly-suspicious narcotic drug prescriptions.”
“Federal laws that regulate the reporting of certain financial transactions are in place to detect and stop illegal activities, such as narcotics trafficking and prescription drug diversion schemes,” stated IRS Criminal Investigation’s acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation is committed to enforcing these laws and following the money, particularly when doctors profit from issuing medically unnecessary prescriptions.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If convicted of the 29 counts in the indictment, Bryan would face a statutory maximum sentence of 145 years in federal prison.
The investigation into Bryan was conducted by IRS Criminal Investigation, the Drug Enforcement Administration, the Department of Health and Human Services – Office of Inspector General, the Department of Defense – Defense Criminal Investigative Service, the California Department of Justice and the Los Angeles Police Department.
Media Advisory: Cedar Rapids/Linn County Town Hall - Opioid/Heroin CrisisRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office is joining with the Cedar Rapids Police Department to hold a second Town Hall to discuss the opioid and heroin epidemic that has impacted the city. To help raise awareness and to educate young people on the dangers of addiction, the FBI and DEA have released the documentary Chasing the Dragon: The Life of an Opiate Addict, a compilation of heart-wrenching first-person accounts by addicts and family members of addicts about their experiences. This 49 minute film will be shown.
After the film, there will be a Q&A session followed by a discussion of drug treatment options available in Linn County. The Eastern Iowa Heroin Initiative will launch C.R.U.S.H. (Community Resources United to Stop Heroin), which is a community outreach initiative designed to involve schools, law enforcement, treatment providers, community leaders and health care organizations to address the growing epidemic. This community response was recently initiated in Dubuque, Iowa.
U.S. Attorney Kevin W. Techau will be present. The event is open to the public. Event page: https://www.facebook.com/events/268612736818992/.
Event Details
When: May 31, 2016
Where: Cedar Rapids Downtown Public Library (Whipple Aud.), 450 5th Ave SE
Time: Begins at 6:00 p.m., and ends at 8:00 p.m.
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected].
Lynchburg Man Sentenced for Failing to Register as Sex OffenderRead the Press Release
LYNCHBURG, VIRGINIA – A Lynchburg man, who previously pled guilty to failing to register under the Sex Offender Registration and Notification Act [SORNA], was sentenced today in Federal Court after he failed to keep his registration up-to-date, United States Attorney John P. Fishwick Jr. announced today.
Darren Andrew Beauregard, 50, of Lynchburg, Virginia, previously pled guilty in the United States District Court for the Western District of Virginia in Lynchburg to one count of failure to register as a sex offender as required under SORNA. Today in District Court, Beauregard was sentenced to 18 months in Federal prison and five years of supervised release thereafter.
“The Sex Offender Registration and Notification Act is an important tool for law enforcement in regards to keep our communities safe,” United States Attorney John P. Fishwick Jr. said today. “When individuals fail to comply with the requirements placed on them by SORNA, we will work with our law enforcement partners to prosecute them.”
The investigation of the case was conducted by the United States Marshals Service. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Luling Woman Pleads Guilty to Filing False Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KALI IRONS, age 39, of Luling, pled guilty today to one count of filing a false tax return.
According to court records, IRONS, a self-employed tax preparer, under-reported her taxable income for 2009 and 2010 to the IRS. This resulted in a tax loss to the United States in the amount of $88,203.00.
IRONS faces a sentence of up to three years in prison, up to $100,000 in fines, and up to one year of supervised release. U.S. District Judge Eldon Fallon set sentencing on September 1, 2016.
U.S. Attorney Polite praised the work of the Department of the Treasury/Internal Revenue Service Criminal Investigation team. Assistant United States Attorney Edward J. Rivera is in charge of the prosecution.